Performance Measurement of Supply Chain Quality Management by Combination Balanced Scorecard and System Dynamics

Abstract

Supply chain quality management is recognized as a strategic tool for achieving a high level of quality and competitiveness in global markets; Of course, one of the major challenges in this regard is the lack of resources and sufficient knowledge on how to measure supply chain management performance. The purpose of this study is to develop a model for measuring the performance of supply chain quality management. Due to the supply chain dynamics and the complexity of strong relationships between key variables, the system dynamics has been used in this research. In this regard, firstly, the indicators for measuring the performance of supply chain quality management were identified through library studies and were categorized according to a balanced scorecard with of expert's survey. Then, by determining the relationships between the research variables, the causal-flow and stock and flow charts were mapped. After defining the dynamic equations and simulating the model in the software, the validity of the model was verified through two Behavioral reproduction and sensitivity analysis tests. The results show that changes in quality improvement programs as the lowest level of BSC have a significant impact on the indicators of staff skills, customer satisfaction, mismatched products and profits that all Balanced scorecard levels.

Keywords

• system dynamics
• total quality management
• performance measurement
• supply chain quality management
• balanced scorecard